11:12 AM EDT, 03/12/2026 (MT Newswires) -- UiPath's ( PATH ) Q4 results point to "stability" in a challenging environment for automation companies, though stronger artificial intelligence adoption will need to drive faster growth before sentiment improves, Morgan Stanley said in a report Thursday.

The company reported annual recurring revenue of about $1.85 billion in Q4, up 11% year over year and above the high end of its guidance. Net-new ARR rose 20% on a reported basis but declined 5% on a constant-currency basis, broadly in line with recent quarters, the report said.

The investment bank said the results reflect improving execution and a stabilizing business as UiPath ( PATH ) focuses on combining AI agents with robotic process automation, process mining and intelligent document processing to automate business processes.

The company said annual recurring revenue from its AI-related offerings reached about $200 million for the first time, representing more than 10% of total ARR, with the firm saying the figure indicates "early AI traction" and growing adoption among large customers.

Morgan Stanley maintained an equal-weight rating on the stock and lowered its price target to $17 from $19, while awaiting clearer signs that expanding adoption of AI agents will translate into sustained acceleration in ARR growth.

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